The Central Bank of Nigeria has reportedly directed Deposit Money Banks to remove the rate cap on the naira at the Investors and Exporters’ (I&E) Window of the foreign exchange market, to allow for a free float of the national currency against the dollar and other global currencies.

The development came barely two weeks after President Bola Tinubu promised to unify the nation’s multiple exchange rates.

According to the chief executive officer of a commercial bank, who confirmed the development to The PUNCH, banks are now allowed to trade forex on the I & E window at any rate, subject to N1 spread.

“The CBN has called banks that the rate cap has been removed at I&E Window.

“Hence, banks and customers are allowed to trade freely at any rate subject to N1 spread between buy and sell rate”, the bank chief said.

Following the development, the naira depreciated to over N700/dollar during trading on the I&E window on Wednesday.